Recently, The Atlanta Hawks Basketball and Entertainment LLC, the former ownership group of the NBA franchise, has filed a lawsuit against two of the prominent insurance companies in the nation. While the lawsuit directly implicates New Hampshire Insurance Company, court documents suggest that AIG is also involved. As such, these charges are related to the payment of Danny Ferry, the former General Manager of Atlanta Hawks.
Regarding the lawsuit, it is notable that ABHE oversaw Atlanta Hawks until April 2015, when it was sold to the current management. As the former owner of Atlanta Hawks, Bruce Levenson is among the filers who feel betrayed by AIG as the company has repeatedly ignored requests from him to pay insurance claims regarding the employment contract of the former General Manager, Denny Ferry. As the head of ABHE, Bruce Levenson of the UCG understood that a long-term employment contract with his associates, such as Ferry, could prove risky if he decided to sell his company. Based on his assumption of the risk, Bruce Levenson insured the employment contract with New Hampshire Insurance Company.
Actually according to Forbes, Ferry was hired in 2012 by Bruce Levenson for an $18 Million contract for six years. The sale of Atlanta Hawks meant that Danny Ferry could not be compensated fully for his duties. Logically, his decision seemed practical as Atlanta Hawks was sold to a new management before the six year contract expired. As a result, the former General Manager of Atlanta Hawks, Danny Ferry, was entitled to payout from the insurance company.
While Danny Ferry and Atlanta Hawks reached an agreement to settle the compensation, they also want the insurance company to pay an undisclosed sum, which was a part of the agreement. However, both AIG and New Hampshire Insurance Company are not responding to legal claims. Therefore, the law firm representing former stakeholders of ABHE filed filed a lawsuit in the Superior Court of Fulton County on Sept. 13 against the insurance company for breach of contract and insurance in bad faith.